Budget deficit target missed

ISLAMABAD: The government has missed the budget deficit target for the last fiscal year as the financial year (2021-22) was closed with a deficit of 7.9 per cent or Rs5.259 trillion against the 6.3 per cent target set in the budget.

According to the summary of consolidated fiscal operation uploaded by the Finance Division on Friday, the total revenue was Rs8035.383 billion against the total expenditure of Rs13295.275 billion during the last fiscal year.

Tax revenue was Rs6755 billion with federal Rs6142 billion and provincial 612.366 billion – and non-tax revenue of Rs1280 billion – federal Rs1151 billion and provincial Rs128.297 billion

Federal taxes included direct taxes of Rs2,280 billion, taxes on international trade (customs) Rs1,009 billion, as well as, sales tax Rs2,531 billion and federal excise Rs320.978 billion.

Total expenditure during the last fiscal year (2021-22) were recorded Rs13,295.275 billion with; current expenditure Rs11,521.375 billion of which mark-up payments were Rs3182.432 billion – domestic Rs2,828.572 billion and foreign Rs353.860 billion, defence expenditure Rs1411.646 billion.

FY22 budget deficit likely to stand at 9pc of GDP — highest-ever in country’s history

Pension expenditure stood at Rs541.862 billion, running of civil government Rs546.725 billion while subsidies Rs1,529.609 billion and grants to others Rs1,141.830 billion. Development expenditure and net lending was Rs1,657.422 billion, whereas, statistical discrepancy was found of Rs116.478 billion.

Financing of budget deficit was met by borrowing of Rs5,230 billion from external and domestic sources as government (net) borrowing from external sector stood at Rs1,178.410 billion and domestic (net) borrowing was Rs4,081 billion, which included non-bank borrowing of Rs980.570 billion and bank borrowing of Rs3,100.912 billion.

Provincial taxes of 612.366 billion included sales tax on services Rs355.720 billion, excise duty Rs8.896 billion, stamp duties Rs70.888 billion and motor vehicles tax Rs36.219 billion besides others Rs140.643 billion.

Non-tax revenue of Rs1,280.215 billion included federal non-tax Rs1,151.918 billion; (i) mark-up (PSEs and others) Rs87.792 billion; (ii) dividend Rs42,872 billion; (iii) profit PTA and others Rs103.444 billion; (iv) surplus profit of State Bank of Pakistan Rs473.574 billion; (v) defence receipts Rs17.261 billion; (vi) passport fee Rs21.619 billion; (vii) discount retained on crude oil Rs16.504 billion; (viii) royalties on oil/gas Rs90.842 billion; (xi) windfall levy against crude oil Rs14.397 billion; (x) petroleum levy on LPG Rs3.659 billion, as well as, gas infrastructure development cess Rs18.619 billion and natural gas development surcharge Rs20.372 billion, petroleum levy Rs127.529 billion and others Rs113.434 billion. Provincial non-tax stood at Rs128.297 billion. Provinces gave a surplus of Rs350.991 billion: Punjab Rs351,30 billion, Sindh Rs48.786 billion, whereas, KP negative by Rs49.179 billion and Balochistan negative by Rs0.157 billion.

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